Using These to Detect Fraud Is Much Easier Than Assessing

question 52

Multiple Choice

Using these to detect fraud is much easier than assessing changes in the financial statement numbers themselves:

• A) Financial statement ratios
• B) Vertical analyses
• C) Horizontal analyses
• D) Data mining

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Definitions:

Stock Index

A measurement of a section of the stock market calculated from the prices of selected stocks, representing a specific market or sector.

Futures Contracts

Financial contracts obligating the buyer to purchase an asset or the seller to sell an asset, such as a physical commodity or a financial instrument, at a predetermined future date and price.

Electronic Networks

Systems or platforms that facilitate the trading of financial instruments, such as stocks and currencies, digitally and without a physical trading floor.

Trading Pits

Physical locations on the floor of some exchanges where traders use open outcry and hand signals to buy and sell commodities or financial instruments.